Fortescue gains control of Red Hawk

Fortescue Metals Group (ASX: FMG) has secured a majority stake in iron ore miner Red Hawk (ASX: RHK) following the acceptance of its A$254 million ($160 million) takeover offer by the company’s largest shareholder.The world’s fourth-largest iron ore miner, through its wholly owned subsidiary FMG Pilbara, now holds a 66.23% stake in Red Hawk. Todd Corporation, which held a 60.71% stake in Red Hawk as of Jan. 24, accepted the offer of A$1.05 per share.The miner’s proposal, tabled last month, aims at securing access to the Blacksmith project, an undeveloped iron ore project located 30km west of Fortescue’s Solomon operations in Western Australia.The project has a mineral resource estimate of 243 million tonnes of iron ore, presenting a strategic opportunity for Fortescue’s continued expansion in the steelmaking raw materials sector.Fortescue’s offer includes a provision to increase the purchase price to A$1.20 per share if FMG Pilbara increases its stake to 75% or more within seven days via an off-market takeover bid.Red Hawk’s board has unanimously endorsed the offer, urging shareholders to accept it at either the base price or the elevated amount if the conditions are met. All Red Hawk directors have committed to accepting the bid.This acquisition aligns with Fortescue’s broader growth strategy, strengthening its position in the iron ore market even as global demand shows signs of weakening.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com